OTA reacts to Ontario’s announcement of a carbon cap and trade program

by Truck News

TORONTO, Ont. — An announcement yesterday that Ontario will join Quebec in introducing a carbon cap and trade system raised questions about how the trucking industry will be affected.

The Ontario Trucking Association (OTA) reacted with questions about how funds raised will be reinvested. OTA president David Bradley also wondered how and what carbon caps will be applied to transportation fuel.

Ontario Premier Kathleen Wynne said details of the plan will be released sometime this fall.

“In establishing a cap and trade system, Ontario intends to join North America’s largest carbon market already being operated by Quebec and California,” Wynne said in a joint statement with Quebec Premier Philippe Couillard. “This will help improve market stability, minimize implementation costs and provide a consistent approach to greenhouse gas emitters in both provinces.”

Bradley said the trucking industry will likely be impacted by the scheme through increased fuel prices and maybe even higher equipment costs.

“The trucking industry is already taking action by voluntarily investing in GHG reduction technologies and devices,” he said. “On the regulatory front, Ontario recently introduced a biodiesel mandate supposedly to reduce GHGs and the US and Canadian federal governments jointly introduced a new North American fuel economy/GHG reduction regulation for heavy trucks.

“More can always be done, especially if it encourages investment in carbon reduction. For a cap and trade system to work, it would need to be transparent and reinvest what motor carriers will pay, either directly or indirectly through higher prices, to help them expedite the shift to current, proven fuel-saving technologies and next generation solutions,” Bradley added. “However, if the sole outcome of a cap and trade system is to raise the price of diesel fuel and/or help some other industry reduce its carbon footprint, then we would obviously be very concerned.”

Bradley pointed out the trucking industry is already transitioning to more fuel-efficient trucks that produce less emissions. He said the industry would like government to partner with it to encourage the adoption of such equipment.

“What we have been seeking is a partner in government to work with us to retool our fleets at a faster pace and therefore to bring about GHG reductions more quickly,” Bradley said.

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  • I assisted at the meeting in Québec City. It appears that there is a lot of pressure by US and surrounding states to make a move into that direction which explain Ontario position.

    Our concern should be that the money invested in this found should become money to help the trucking industry to get this money to invest in new equipment.

    It is important that this money is not use to reimbursed the général funding of the Government.

    Second points, there is a need of harmonisation across the country and that no carriers in the country should be exampt of the taxes.

    Third, trucking industry should be able to cumulate tax crédit ( carbon), in order to do that à mechanism must be put in place to determine à formula that all carriers should use to calculate the cerdits based on the fuel consumption, including the tons/km transported, the type of roads, the season of the years, all factors affecting fuel consumption.

    A lot of things to be accounted for.
    When these issues were discussed people recognized the necessity for the government to develop à specific model for the trucking industry to respect the intention of the regulation

    Claude robert